The U.S. national debt has surpassed $40 trillion for the first time underscoring growing pressure on the federal government’s finances as spending continues to outpace revenue.
The debt has doubled since January 2017 when President Donald Trump first took office, rising from $19.95 trillion, according to Treasury Department data.
About one-third of the increase came during the two years following the COVID-19 pandemic when the Trump and Biden administrations borrowed heavily to fund economic relief and recovery measures. U.S. debt has risen by $3.8 trillion since Trump returned to office in January 2025, while it increased by $8.4 trillion during Joe Biden’s presidency.
The federal government reported a $432 billion budget deficit in July 2026, its 4th-largest monthly shortfall on record. The deficit for the first 10 months of the 2026 fiscal year has already exceeded the total gap recorded in fiscal 2025.
2025 RECAP | U.S National Debt Grew By $2.2 Trillion to Hit $38.5 Trillion in 2025
Interest payments are also becoming an increasing burden.
The United States is spending about $1.1 trillion annually on interest, with debt-service costs surpassing Pentagon spending in fiscal 2025. Interest payments have since overtaken Medicare spending to become the second-largest federal budget item after Social Security.
The $40 trillion debt load is equivalent to about $117,000 per person in the United States and $297,000 per household, according to figures cited by the Peter G. Peterson Foundation.
The Congressional Budget Office estimates Trump’s flagship second-term tax and spending package, known as the One Big Beautiful Bill Act, will add another $4.7 trillion to the national debt.
The rising debt has renewed debate over Washington’s fiscal sustainability with mandatory programmes such as Social Security, Medicare, and Medicaid accounting for about 60% of annual federal spending.
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